# Real Briefings — Meeting Narrative ## Meeting Overview On the afternoon of September 29, 2025, the City of Bellingham's Budget and Finance Committee convened for what turned out to be one of the briefest meetings in recent memory — just three minutes and thirty-six seconds of substantive business. Committee Chair Lisa Anderson was joined by Council Members Michael Lilliquist and Dan Hammill in the Council Chambers on the second floor of City Hall for a single item of mandatory housekeeping: updating the city's business licensing thresholds to comply with state law. The meeting exemplified the routine but essential work of municipal governance — the kind of technical adjustments that keep the city's operations aligned with evolving state requirements. While lacking the drama of budget debates or the passion of housing policy discussions, this brief session demonstrated how cities must regularly adapt their local codes to maintain compliance with state mandates, often with minimal fanfare but significant administrative importance. ## State-Mandated Business License Threshold Update The sole item before the committee was Bill Number 24672, an ordinance amending Bellingham Municipal Code Chapter 6.05 to adopt uniform general business license requirements mandated by Washington State. The issue traces back to 2017, when the Washington State Legislature adopted Engrossed House Bill 2005, codified in Chapter 35.90 of the Revised Code of Washington (RCW). Chair Anderson opened the discussion by explaining the background: "In 2017, the state, the Washington Washington State Legislator adopted in Grossville 2-0-0-5, codified in Chapter 35.90, revised code of Washington RCW, which requires cities who have a general business license requirement to work together through the association of Washington cities to adopt a model ordinance which contains, among other provisions, a uniform minimum license threshold under which which a person who would be relieved of the requirement to obtain a city's general business license." The Association of Washington Cities (AWC) had updated the minimum license threshold from $2,000 to $4,000 in their model ordinance, which the city must adopt by January 1, 2026, as required by state law. Anderson noted that this change affects businesses operating in Bellingham but located outside city limits. Finance Director Andy Asbjornsen provided the technical details: "As the intro says this was introduced back in 2018 the model ordinance has now been updated from a $2,000 minimum up to a $4,000 minimum. This is for business licensing for businesses that reside outside of the city of Bellingham. So this just adjusts that minimum up to that $4,000 limit." Asbjornsen emphasized the compliance aspect, explaining that the ordinance language came directly from AWC: "If you note the bottom paragraph of the ordinance, that language is directly from AWC as written to make sure that we're all in compliance and are addressing also the CPI adjustment every four years that is identified in there. This needs to take effect January 1st to stay in compliance with all the other 222 BLS cities in the state." The ordinance also builds in automatic adjustments tied to the Consumer Price Index, ensuring the threshold keeps pace with inflation every four years without requiring additional legislative action. ## Committee Discussion and Fiscal Impact The discussion that followed was brief but illuminating about the practical effects of the change. Council Member Dan Hammill immediately recognized the straightforward nature of the update: "Yeah I don't really have any questions I think this is housekeeping to me and I think it's pretty straightforward so I just wouldn't move to approve." Council Member Michael Lilliquist posed the most substantive question of the meeting, asking about the number of businesses that would benefit from the higher threshold: "With this change from 2000 to 4000 do we have a number of known business licenses that will not have to to be renewed with this change?" Asbjornsen's response revealed both the administrative limitations and the modest fiscal impact: "We have not been able to quantify the number. It is not large. The requirement to pay be no taxes and it starts till 5,000 quarterly. So this is just kind of that in between the $2,000 and $4,000 mark we weren't able to identify. It's $40 a business license so it's a very small amount that we suspect will be missed." The $40 business license fee represents a minimal revenue impact to the city, but Lilliquist expressed satisfaction that some small businesses would benefit: "Thank you. I was hoping there was some small businesses out there who will be rejoicing to keep $40 in their pocket." This exchange highlighted one of the recurring tensions in municipal finance — balancing the administrative burden and costs of licensing with the need to generate revenue and maintain regulatory oversight. The state's decision to raise the threshold acknowledges that very small businesses shouldn't face the same licensing requirements as larger operations. ## Swift Resolution and Forward Movement With Hammill's motion to approve already on the table and no further questions, Chair Anderson moved quickly to a vote. The unanimous approval — all three committee members voting "aye" with no opposition — reflected the routine nature of the change and the committee's understanding that this was mandatory compliance rather than discretionary policy. Anderson concluded the meeting by noting her intention to bring the ordinance forward to the full City Council that evening with a recommendation for approval: "I'll bring this forward tonight to Council for a full recommendation." ## Closing & What's Ahead The meeting adjourned at 1:53 p.m., having lasted only fourteen minutes from call to order to adjournment, with the actual business conducted in under four minutes. Chair Anderson transitioned the proceedings back to Council President Pro-Tem Williams for any remaining city business. While brief, the meeting demonstrated the often-unseen work of municipal governance — the regular updates to city code required to maintain compliance with evolving state and federal requirements. The ordinance would proceed to the full City Council for formal adoption, ensuring Bellingham remains in compliance with the statewide business licensing framework designed to create consistency across Washington's 222 cities that require business licenses. The efficient handling of this technical update freed up committee time for more complex budget and finance matters in future meetings, while ensuring that small businesses operating in Bellingham but based elsewhere would benefit from the higher threshold when it takes effect on January 1, 2026.

### Meeting Overview The City of Bellingham Budget and Finance Committee met on September 29, 2025, to consider a single ordinance updating business licensing requirements. Committee Chair Lisa Anderson led the brief 4-minute meeting with members Dan Hammill and Michael Lilliquist to approve changes mandated by Washington State law. ### Key Terms and Concepts **General Business License:** A registration required for businesses operating in Bellingham, separate from specialized permits or regulatory licenses. **Threshold Exemption:** The minimum annual revenue amount below which businesses are exempt from general licensing requirements - currently being raised from $2,000 to $4,000. **AWC (Association of Washington Cities):** A statewide organization that develops model ordinances for cities to adopt, ensuring uniformity across municipal jurisdictions. **BLS Cities:** The 222 Washington cities that participate in the Business Licensing Service system coordinated through the state Department of Revenue. **Model Ordinance:** A standardized legal template created by AWC that cities must adopt to comply with state requirements for business licensing. **CPI Adjustment:** Consumer Price Index adjustments that automatically update the threshold exemption amount every four years based on inflation. **BNO Tax:** Business and Occupation tax, which starts at $5,000 quarterly revenue - separate from the general business license requirement. **RCW (Revised Code of Washington):** The compiled statutes of Washington State, including Chapter 35.90 which mandates uniform business licensing. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Lisa Anderson | Budget and Finance Committee Chair, Fifth Ward Council Member | | Dan Hammill | Committee Member, Third Ward Council Member | | Michael Lilliquist | Committee Member, Sixth Ward Council Member | | Andy Asbjornsen | Finance Director, presenting the ordinance | ### Background Context In 2017, the Washington State Legislature passed Engrossed House Bill 2005 requiring all cities with business licensing to work together on uniform standards. This prevents a patchwork of different requirements across the state's 222 participating cities. The Association of Washington Cities develops model ordinances that cities must adopt to stay in compliance. The current update raises the minimum revenue threshold from $2,000 to $4,000, meaning small businesses with annual revenues below $4,000 won't need to pay the $40 licensing fee. This change recognizes inflation since the last adjustment and provides relief to very small businesses. The ordinance also includes automatic inflation adjustments every four years to prevent the need for frequent legislative updates. ### What Happened — The Short Version Finance Director Andy Asbjornsen presented Bill 24672, explaining that the Association of Washington Cities updated their model ordinance to raise the business license exemption threshold from $2,000 to $4,000 annual revenue. This change must take effect January 1, 2026, to keep Bellingham in compliance with state law and aligned with the other 222 cities in the Business Licensing Service system. Committee members had minimal questions. Dan Hammill called it "housekeeping" and moved to approve. Michael Lilliquist asked about how many businesses would benefit from the higher threshold, but city staff couldn't quantify the exact number - they noted it would be small since businesses between $2,000-$4,000 revenue represent a narrow band. The committee unanimously approved the ordinance 3-0, with Chair Anderson indicating she would bring it to the full City Council that evening. ### What to Watch Next - The full City Council will consider this ordinance at their evening meeting on September 29, 2025 - If approved, the ordinance takes effect January 1, 2026 - Small businesses with annual revenues between $2,000-$4,000 will no longer need to pay the $40 licensing fee starting in 2026 ---

**Q:** What was the only agenda item at this Budget and Finance Committee meeting? **A:** Bill 24672, an ordinance amending Bellingham Municipal Code Chapter 6.05 to adopt uniform general business license requirements mandated by Washington State. **Q:** Who chaired this committee meeting? **A:** Lisa Anderson, Fifth Ward Council Member and Budget and Finance Committee Chair. **Q:** Which other council members served on this committee? **A:** Dan Hammill (Third Ward) and Michael Lilliquist (Sixth Ward). **Q:** Who presented the ordinance to the committee? **A:** Andy Asbjornsen, the City's Finance Director. **Q:** What is the current business license exemption threshold being changed from? **A:** $2,000 in annual revenue. **Q:** What will the new business license exemption threshold be? **A:** $4,000 in annual revenue, effective January 1, 2026. **Q:** How much does a general business license cost in Bellingham? **A:** $40. **Q:** What state legislation originally required this uniform licensing system? **A:** Engrossed House Bill 2005, passed in 2017 and codified in Chapter 35.90 RCW. **Q:** How many cities participate in Washington's Business Licensing Service system? **A:** 222 cities statewide. **Q:** What organization develops the model ordinance that cities must adopt? **A:** The Association of Washington Cities (AWC). **Q:** How often will the threshold amount be adjusted for inflation? **A:** Every four years (48 months) on January 1, based on Consumer Price Index changes. **Q:** What was Dan Hammill's characterization of this ordinance? **A:** He called it "housekeeping" and said it was "pretty straightforward." **Q:** What question did Michael Lilliquist ask about the threshold change? **A:** Whether the city knew how many business licenses would not need to be renewed due to the higher threshold. **Q:** Could city staff quantify how many businesses would benefit from the higher threshold? **A:** No, they were unable to identify the exact number, noting it would be small. **Q:** What was the committee's final vote on the ordinance? **A:** Unanimous approval, 3-0. **Q:** When does this ordinance need to take effect to maintain state compliance? **A:** January 1, 2026. **Q:** What happens to businesses that fall below the new $4,000 threshold? **A:** They are exempt from general business license requirements, though regulatory licenses and special permits may still apply. **Q:** How long did this committee meeting last? **A:** Approximately 4 minutes, from 1:49 p.m. to 1:53 p.m. **Q:** What was the next step for this ordinance after committee approval? **A:** Chair Anderson would bring it to the full City Council meeting that evening with a recommendation for approval. ---